Morning Briefing: Trade data weighs on Asia, Europe gains

by Steve Randall09 Mar 2016

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Morning Briefing: Trade data weighs on Asia, Europe gains

Trade data weighs on Asia, Europe gains
Oil prices are trending higher this morning on hopes of a deal to freeze output at January levels. The OPEC and non-OPEC producers’ agreement could be sealed later this month.

While higher oil prices have added some positive sentiment to markets Wednesday, the weaker-than-expected Chinese trade data revealed in the previous session has weighed on Asian investors.

The major Asian indexes have closed mixed with Sydney and Seoul ending with gains but the others closing lower. Tokyo was hit by exporters’ stock falling on the stronger yen against the greenback.

European markets are holding above the line with the ECB meeting Thursday. Earnings have boosted the major indexes and a survey of manufacturing businesses in the UK showed growth in January of 0.7 per cent following poor output in 2015.

Wall Street and Toronto are expected to open higher.

Latest

1 month ago

1 year ago

North America (previous session)

US Dow Jones

16,964.10 (-0.64 per cent)

+5.85 per cent

-5.00 per cent

TSX Composite

13,311.05 (-0.54 per cent)

+8.37 per cent

-10.39 per cent

Europe (at 5.30am ET)

UK FTSE

6,142.64 (+0.28 per cent)

+9.06 per cent

-10.67 per cent

German DAX

9,760.45 (+0.70 per cent)

+9.92 per cent

-15.73 per cent

Asia (at close)

China CSI 300

3,071.91 (-1.15 per cent)

+3.65 per cent

-13.17 per cent

Japan Nikkei

16,642.20 (-0.84 per cent)

+3.46 per cent

-11.43 per cent

Other Data (at 6.30am ET)

Oil (Brent)

Oil (WTI)

Gold

Can. Dollar

40.36
(+1.59 per cent)

37.08
(+1.79 per cent)

1255.80
(-0.56 per cent)

U$0.7474

Aus. Dollar

U$0.7490

IMF warns of “economic derailment”
The International Monetary Fund has issued a warning that the world faces an “economic derailment” and needs urgent action. Deputy director David Lipton was speaking at the National Association for Business Economics in Washington Tuesday and warned of a “weakening baseline” for the global economy.

The IMF’s forecast for global growth is currently 3.4 per cent but it has said it is likely to reduce that when it updates it outlook next month. Mr Lipton said that urgent action is needed to boost the global economy as we are at a “delicate juncture.”

Big US banks to launch instant mobile payments
A group of America’s big banks are to launch instant mobile payments to allow smartphone and tablet to conduct transactions securely. While PayPal and others already offer similar products, this innovation will be bank-to-bank payments without a third party. The banks involved include JP Morgan Chase, Wells Fargo Bank of America and Bancorp; they jointly own a system called clearXchange.